June 7, 1989

Britain Stands by Its Pledge To Cede Hong Kong to China

By CRAIG R. WHITNEY, SPECIAL TO THE NEW YORK TIMES

rime Minister Margaret Thatcher told Parliament today that despite ''utter revulsion and outrage at the indiscriminate firing on people'' in Beijing, Britain would abide by its commitment to hand over the colony of Hong Kong to China in 1997.

Mrs. Thatcher said Britain would ''see what can be done'' between now and 1997 to strengthen legal and constitutional rights for all 5.6 million people of Hong Kong after it becomes a special administrative region of China.

The Hong Kong stock market stabilized today, posting a small gain after its leading index plunged 22 percent Monday. But brokers predicted a further sell-off because of the violence in China and indications that the situation there will remain chaotic for some time, Reuters reported.